Indian IT Firms Delay Wage Hikes Amidst Weak Demand

• Major Indian IT companies like Infosys, HCLTech, and LTIMindtree have deferred wage hikes to Q3 FY25 due to sluggish demand.
• This delay reflects the uncertainty in the global demand environment, particularly for discretionary IT services.
• Aggregate margins may increase by 25 basis points sequentially, with HCLTech leading.
• However, not all firms are benefiting equally from this cost-saving measure. Mid-tier players may still face headwinds related to earlier commitments to employee compensation.
• Analysts are optimistic that wage hikes are imminent as the worst is believed to be over.

Source: Moneycontrol